CNBC reports that the gold market is “very strong” and could hit $3,500 in two years, one analyst told.

Prices have surged and reached record highs on Monday amid worries over the coronavirus pandemic and tensions between the U.S. and China.

“What is really significant is how quickly it went through that $1,923 which was the previous high. The other thing which was … very, very important was the fact that it went through $1,800 and with similar ease,” said Barry Dawes, executive chairman at Martin Place Securities. “That’s basically saying to me that this is a very, very strong market.”

“I’m looking for $3,500 within two years,” Dawes told CNBC. He said some consolidation is “probable,” but the underlying strength of the rally is “very significant.” 

Garth Bregman of BNP Paribas Wealth Management predicted that prices could consolidate around $2,000, before increasing again.

“We don’t see any catalyst in the short term for gold to stop its rise. In fact, the factors that have driven gold to these new highs are still very much in place,” said Bregman who is the Asia Pacific head of investment services. 

Juerg Kiener, managing director of Swiss Asia Capital, is also bullish on the precious metal.

“If you look at the technical picture, you could actually take this gap from the bottom up and going to the top, that gives you about $2,834 and that would be (an) initial target probably that you could achieve quite fast,” he said.

“I think my longer term targets are significantly higher,” he told.

Historically, he pointed out that gold prices have moved seven or eight times higher from their bottoms.

“If your bottom structure was $1,050, times seven, that will give you about $8,000,” he said.